Jeff Chi is a featured contributor to Programmatic Advertising: A Modern Marketer's Definitive Guide report.
Here's the complete contribution:
Display ads will always have a place in the digital ecosystem whether it’s now, 3 years from now or 5 years from now because it is a valuable piece of real estate on any app or website across mobile, desktop and CTV devices. The placement is standard and effective for brands.
What will change, however, is the pricing and activation which is driven by the maturity of programmatic advertising. Programmatic advertising and technology have completely been game changers for our ad industry. The technology around programmatic advertising has really advanced in the last couple of years allowing high effective targeting using user data.
This has created a new trend of audience targeting that has been gaining popularity very quickly over the last couple of years. So since more advertisers are targeting the actual user and not the website or app, publishers are now integrating to all the major programmatic platforms in order for them to follow where ads are being spent.
With more direct to publisher programmatic activations, this will drive down the price of ads and will attract more advertisers to shift their budgets to programmatic where they will benefit with data capabilities on top of just pricing.
3 to 5 years is a long time in our industry and I have little doubt in this timespan we will see programmatic buying completely take over traditional media planning. It is just a matter of time. The capabilities of traditional media buying just cannot compete with programmatic.
The incorporation of data-driven targeting in programmatic has allowed advertisers to target their ads based on the actual user, meaning targeting the user’s interest and habits as opposed to the content that they are viewing. This is called audience targeting and has quickly become one of the hottest topics in our industry.
Audience targeting is only possible using programmatic activations that incorporate a layer of user data. We continue to see advertisers shift their budgets to audience targeting as opposed to traditionally targeting users by where they are consuming their content.
We will see a continued shift with publishers directly integrating to programmatic platforms in order for them to capture the shift in ad spend. The more people are using data for targeting, the more traction programmatic advertising will gain and we will see more and more publisher direct inventory through programmatic platforms as a result. I believe traditional ad sales teams for publishers will be swapped out by programmatic ops and sales teams in the future.
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